Franchisor training and assistance (disclosure item)
Franchisor training and assistance is the disclosure item describing any training or other assistance the franchisor or its associate offers franchisees. Ontario’s O. Reg. 581/00 requires it to say whether the training is mandatory or optional and, if mandatory, who bears the cost.
A buyer meets this item in the disclosure document, where the franchisor describes what support comes with the franchise. See what a franchisor must disclose before you sign.
Where the Acts mention training
Ontario’s Arthur Wishart Act and British Columbia’s Franchises Act both name training in their definitions of a franchise. In Ontario, one limb asks whether the franchisor or its associate has the right to exercise or exercises significant control over, or has the right to provide or provides significant assistance in, the franchisee’s method of operation, including marketing techniques or training. British Columbia’s s. 1 refers to a franchisor or associate that exercises significant control over, or offers significant assistance for, that method of operation. This entry covers the Ontario disclosure item and those two definitions; check the rules where you are.
What to ask
- What training is promised, when it happens and where
- Whether it is mandatory or optional, and who pays if mandatory
- Whether a resale buyer gets it; see whether a resale requires retraining
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentO. Reg. 581/00: GENERAL
- 02Government of OntarioGovernmentArthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3
- 03Government of British ColumbiaGovernmentFranchises Act, S.B.C. 2015, c. 35
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